Summary of Statement No. 43
Summary of Statement No. 43
Accounting for Compensated Absences (Issued 11/80)
Summary
This Statement requires an employer to accrue a liability for
employees' rights to receive compensation for future absences when
certain conditions are met. For example, this Statement requires a
liability to be accrued for vacation benefits that employees have
earned but have not yet taken; however, it generally does not
require a liability to be accrued for future sick pay benefits,
holidays, and similar compensated absences until employees are
actually absent.